The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then rises by $100, what will be the interest rate yield to a new buyer of the bond?

The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then rises by $100, what will be the interest rate yield to a new buyer of the bond?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter29: Interest, Rent, And Profit

Section: Chapter Questions

Problem 2QP

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The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the
price of the bond then rises by $100, what will be the interest rate yield to a new buyer of the bond?

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